Coca-Cola (KO) Recent Weakness Makes Stock Cheap Enough To Buy

Deutsche upgrades Coke (KO) to BUY and nudges its target up $1 to $65. Three reasons cited:

  • favourable currency impact [in our experience, investors don’t normally pay for this, as it’s temporary]
  • international growth
  • valuation [21X trailing P/E, per Yahoo Finance]

The fact that Deutsche only raised the target $1 suggests that price played the largest role here. While KO was trading in the low $60s as recent as April, the stock now hovers in the mid-$50s. At 21X trailing earnings, the stock may be relatively attractive, but it’s far from cheap.

Coca-Cola (KO) upgraded from Hold to BUY, target from $64 to $65.

See Also:

Coca-Cola (KO) May Get Hit By Brazilian Soda Tax (KO)
Coca-Cola (KO): We’ll Be Fine…We Sell A Lot Outside the US!

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